WHAT IS A BUSINESS PLAN? - SESSION 10

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WHAT IS A BUSINESS PLAN? SESSION 10 (out of 10)

BUSINESS PLAN

This session is part of a 10-weeks course given to master students of the SOLVAY BRUSSELS SCHOOL OF ECONOMICS AND MANAGEMENT by professor Olivier WITMEUR.

Entrepreneurship Course – Session 10 - 2014 © Olivier WITMEUR

•  Why the business plan plays a central role in entrepreneurship

•  What makes a good business plan

QUESTIONS AGENDA RESOURCES •  Business plan content •  Checkliste de l’entrepreneur

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Desired Outcomes of the Session


Multiple BP structures are available. Pick the one you prefer.

Repetitions are frequent from one section to another. Avoid them as much as possible.

Back to the previous sessions!

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Warning


1.  The Entrepreneur(s) Why you?

2.  The Value Proposition What are the problem and your solution?

3.  Market Can you make it big?

4.  Competition Why are you better / unique.

5.  Strategy What are your advantages and what makes you different?

6.  Sales & Marketing Plan How do you acquire, get and grow your customer base?

7.  Production How do you deliver your product/service

8.  IP How do you protect your knowhow, technologies…

9.  R&D What need to be done to finalize/improve your offering

10.  Team and Culture What is the DNA of your company?

11.  Roadmap and Milestones What are the steps to build the company and how do you spend money?

12.  Risk Analysis What are the alternative scenarios?

13.  Financials Is it sustainable (and valuable)?

14.  Financings What are you looking for?

15.  Key Success Factors How do you master them

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Typical detailled business plan content


The people The management team

•  Bio (CVs as appendixes)

•  Individual targets and motivations

Boards (can be included in a specific section)

•  Board of Directors

•  Advisory Board

The story Where does the project and the people come from?

Achievements to date

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Management + Achievements-to-date


Board

Independent directors

Advisory/Strategy Board

Scientific Board

Articles of association

Shareholder agreement

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Governance


Scheme, cycles, organization and methodologies

Internal resources & partners

–  Owned production facilities versus subcontracting

–  Production capacity and bottlenecks

Production costs : Opex and Capex

Economy of scale

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Production


Development roadmap / Product Map

Deliverables

Risks & potential solutions

Project planning

–  Deliverables

–  Risks & potential solutions

Intellectual property

Team and partners involved in the project

R&D costs

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Research & Development


Future organization chart

Corporate culture / Values

Human Resource Management

Wage and benefit policy

Recruitment, appraisal…

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Team & Culture


STAGE 1 STAGE 2 STAGE 3

Roadmap & Milestones

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R&D

OPS

ORGANISATION

Version 1

Case 1

Salesman 1

Version 2

First case abroad

Office abroad

TIME


MILESTONES The development stages of a start-up

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0%

25%

50%

75%

100%

1 2 3 4 5 6 7 8 9 10 11 12 13

Typical Milestones Sales Organisation development Recruitment New Branch/BU Product development …

SEED START-UP EXPANSION EARLY DEVELOPMENT MATURITY RENEWAL


Risk Analysis

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Risk types

•  Management

•  Customer

•  Competition

•  Technology

•  Finance

•  Environment

•  Legal

•  …

•  … and TIMING !!!

PLAN(S) B to be explained


Financial Plan

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Main assumptions (if not explained in the action plan)

Profit & Loss statement

Cash-flow

Balance sheet

Sensitivity analysis / alternative scenario


Fit between action plan and financial plan

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ACTION PLAN

1.  Marketing & Sales

2.  Production

3.  Research & Development

4.  Administration

P&L STATEMENT (profit & loss)

Sales / Revenues

-  COGS (cost of goods sold)

= Gross Margin

-  S&M (Sales & Marketing)

-  R&D (Research & Development)

-  G&A (General & Administration)

= EBIT

(Earnings Before Interests and Taxes)

TO BE BENCHMARKED


Needs

–  Explain and differentiate the use of funds.

Financing plan

–  How do you finance the business?

•  Self financing / Bootstrapping

•  Equity

•  Debts

•  Grants

–  Proposal to investors

•  Including exit if you want to attract BA or VC

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Funding


A real passion for entrepreneurship education and entrepreneurs.

•  Student entrepreneurs: 2x

•  Full time entrepreneur: once, in a team of 5

•  Coach: 500+ projects over the last 20 years

•  (Advisory) Board member in multiple new ventures

•  Policy making: 2x

•  Director of Solvay Entrepreneurs

•  PhD in entrepreneurship in 2008

•  … never as an investor

My wife (as Colombo), no kids, one dog (Vicky).

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Olivier Witmeur (Belgian, 46)


Solvay entrepreneurs is the entrepreneurship center of the Université Libre de Bruxelles. We support entrepreneurs through the development of their venture, from an idea to a successful and sustainable business.

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Solvay Entrepreneurs


Let’s keep in touch!

19 2014%©%Olivier%Witmeur

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WHAT IS A BUSINESS PLAN? - SESSION 10

Business

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